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December 22, 2003, Used Clothing, by Chris
After dealing with three different government departments, our lawyer and our customs broker we finally can see the light and it looks like we should be able to distribute the clothing in Ndawana.
Within the constraints of stovepipe bureaucracy, the government officials have been courteous, helpful and most of all efficient. Mr. Sibusiso Sibandze of the South Africa Revenue Service (SARS), Customs and Tariffs Division, Mr. Coot Grobelaar, also of SARS but in the Industry and Trade area, and Ms. Abosha Gaupal-Singh in the Department of Social Development have consistently returned our calls, and tried to point us in the right direction.
Back to the used clothing: so just why has South Africa , as well as numerous other African nations, banned the import of used clothing? Since we arrived we have learned at least a couple of pretty good reasons. The first is to protect the domestic clothing industry. Textiles are a significant contributor to the economy of many African countries. Labour is cheap and often times the raw materials are available domestically. New clothing from most of the rest of the world is not a threat but used clothing provides huge competition. In South Africa , clothing factories have started to close. The strong rand makes exports less attractive and the domestic market is soft because European and North American dealers have recognized a lucrative market.
Unfortunately, it is not just the true entrepreneurs that have created this problem. In the end "charities," well meaning and otherwise (those deliberately using a charitable designation fraudulently), have led to the total ban on used clothing even for those who can't possibly afford to buy even the basics.
Clothing is a favorite donation to charitable organizations, and a commodity that is relatively easy for volunteers to pack and ship overseas. As a registered charity the goods are VAT and often duty free upon entry into the receiving country. Even if the organization doesn't need clothing to accomplish its goals, the clothing can be sold at a huge profit and provide funding for operations. This has become important fundraising for some overseas charities. Unfortunately, this practice has contributed to the overall used clothing problem, and worse still denies those most in need.
Enter the Department of Social Development and Ms. Gopal-Singh. She now has the responsibility of vetting and monitoring charitable organizations that import used clothing. It is up to her to determine if the charity is legitimate and if the clothing is going to an area in great need. If the case is made successfully, she pleads with SARS to let the clothing into the country. We believe she will do that for us.
Sometimes lessons are learned the hard way, and this is one of those times. Personally I think the South African government has it right, and we have lots to learn about unintended consequences...
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